< Home < Back

Indian rupee snaps six day gaining streak; ends weak despite repo rate cut

Date: 05-04-2016

Snapping its six day gaining streak, Indian rupee depreciated substantially against dollar on Tuesday due to demand for American currency from banks and importers. Besides, losses in local equity markets also hit the rupee sentiment. Meanwhile, Reserve Bank of India has cut repo rate by 25 basis points, which was in line with market expectations. RBI Governor Raghuram Rajan also narrowed the policy rate corridor from +/-100 basis points (bps) to +/- 50 bps by reducing the MSF rate by 75 basis points and increasing the reverse repo rate by 25 basis points. On the global front, dollar fell on Tuesday to its weakest against the yen since October 2014 as investors' view of riskier assets soured, pushing shares and oil prices lower as the outlook for US interest rates remained clouded.

Finally, the rupee ended at 66.46, 26 paise weaker from its previous close of 66.20 on Monday. The currency touched a high and low of 66.51 and 66.07 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.32 and for Euro stood at 75.52 on April 05, 2016. While the RBI’s reference rate for the Yen stood at 59.98, the reference rate for the Great Britain Pound (GBP) stood at 94.4200. The reference rates are based on 12 noon rates of a few select banks in Mumbai